Labor Market Outcomes Of Workers Research Articles

Labour market effects of the COVID-19 pandemic: A Dutch longitudinal study

Abstract Background The COVID-19 crisis has caused profound impact on societal, economic, and healthcare systems. The nature and distribution of these impacts, especially over longer periods of time, is still in need of further investigation. We aim to examine the prevalence of and determinants for poor labour market outcomes during the COVID-19 pandemic among adult workers in the Northern Netherlands. Methods We conducted a longitudinal study based on data from the Lifelines COVID-19 cohort. Data from 23 waves (March 2020 - November 2021) were used. Participants were workers between 18 and 64 years of age (n = 22,378). Dependent variables were labour market outcomes, i.e., unemployment, hours of work, quality of work and sickness absence. Independent variables are sociodemographic and work characteristics, pre-existing health conditions, COVID-19 disease, and government support measures. We employed logistic Generalised Estimating Equations (GEE) to estimate population effects. Results Decrease in hours and quality of work, and requiring sickness absence were markedly present in our sample. While the former seems to show partial recovery throughout the pandemic, the two latter seem to vary over time. The prevalence of unemployment was low. Using GEE, we have found erratic patterns of risk for the four labour market outcomes. Pointing to the vast heterogeneity of experiences and impacts on the labour market outcomes of workers. Women, for example, had higher odds of becoming unemployed (OR: 1.48, 95% CI: 1.23-1.79), but lower odds of decreasing their work hours (OR: 0.90, 95% CI: 0.86-0.93). Discussion The results of this study point to the unequal and heterogeneous impact of the COVID-19 pandemic, as well as the presence of less visible negative outcomes among workers, such as decrease in quality of work. For a complete rebound from this crisis, policy should be aimed at addressing these differential impacts among the population. Key messages • The impact of the COVID-19 pandemic on the labour market is more pervasive than can be attested by looking at unemployment rates. • The impact of the COVID-19 pandemic differed by labour market outcome and population subgroup, and policies should aim to address these differential impacts.

Are the Tickets for Everyone? Heterogeneity of Economic Rewards for Associate's Degree Completion

Associate's degree completion is billed as the quickest way to upskill the workforce and a ticket to the middle class. Yet 35 million Americans leave college without a degree. Black and Hispanic students are more likely than White and Asian students to leave college. We examined whether economic benefits differ between those whose highest level of education is “some college, no degree (SCND)” compared to an associate's degree by analyzing interaction effects among race/ethnicity, sex, citizenship, and nativity. Using data from the Current Population Survey 2019 Annual Social and Economic Supplement, we employed regressions to examine heterogeneity in economic rewards. We also used propensity score matching to estimate causal treatment effects using observational data. On average, associate's workers reaped more economic rewards than SCND workers. In almost every category, the advantage of completing the associate's degree was lost when the worker held at least one socially disadvantaged identity. Economic disadvantage was multiplied for some workers who had more than one disadvantaged identity. Our findings support the economic value of completing an associate's degree and unmask the disparate labor market outcomes for workers of diverse races/ethnicities, sexes, and nationalities.

The labor market impacts of Brexit: Migration and the European union

Given the uncertainty over the post-Brexit immigration system between the UK and EU, how are new migration regulations affecting labor markets? Existing studies indicate that the details of migration policies are pivotal in determining whether workers and aggregate labor market conditions are harmed by restrictions on cross-border movement. This paper builds a two-country model with costly, endogenous migration and frictional labor markets to better understand the effects of migration restrictions over the long-run. The importance of understanding these effects is highlighted by model predictions for heterogeneous impacts on labor market outcomes for workers based on their migration history. A Brexit calibration exercise shows that under model assumptions, increasing migration restrictions is associated with higher unemployment, lower wages, and welfare loss in aggregate, largely through lowering job surplus. Lower migration costs results in better outcomes for workers: keeping visa costs to a minimum is an important channel for maintaining mutually beneficial migration intact.

Cohort profile: the Ontario Life After Workplace Injury Study (OLAWIS)

PurposeThe substantial economic burden of work-related injury and illness, borne by workers, employers and social security programmes, is primarily attributed to the durations of work disability among workers whose recovery...

Information Technology Skills and Labor Market Outcomes for Workers

Job erosion is a major concern globally, especially given the COVID-19 pandemic. Unemployment and low wages remain pressing societal challenges in the wake of increased automation, more so for traditionally disadvantaged groups in the labor market, such as women, minorities, and the elderly. However, workers who possess relevant information technology (IT) skills may have an edge in an increasingly digital economy. In this study, we examine the role of IT skills in labor market outcomes for workers, using a household IT use survey from an emerging economy that captures detailed, individual-level data on IT skills, which are also integrated with data on workers’ wages, occupations, and industries between 2007 and 2015. The results indicate that basic IT skills increase individuals’ employment probability, which is driven by both higher labor force participation and a higher probability of transitioning from unemployment to employment, after accounting for the decision to participate in the workforce. Advanced IT skills do not provide a significant incremental effect on employment probability on top of basic IT skills. However, having advanced IT skills helps workers to earn higher wages while incrementally increasing the probability that they are employed in higher-paid jobs. Interestingly, the effect of basic IT skills on employment is significantly larger for the female and older workforce that typically has a higher preference for flexible work options. These results emphasize the importance of providing necessary IT access and offering basic IT training to traditionally disadvantaged groups to close the IT skills gap and the digital divide. We offer implications for the future of work, education, and public policy for designing IT training policies for workers, students, and organizations to stimulate employment with higher wages, particularly in developing economies and for traditionally disadvantaged segments of the workforce, such as women and the elderly, particularly after the COVID-19 pandemic.

The Effect of Rapid Structural Change on Workers

Abstract This paper deals with the question how workers’ labour market and non-monetary outcomes are impacted by a negative sector-specific labour demand shock. This issue is analysed in a setting of rapid structural change that happened in Eastern Germany after the fall of the Berlin Wall in 1989. The sector-specific labour demand shock can be assumed to be exogenous to other worker characteristics as it was not anticipated and as career planning was highly restricted in the GDR. Using survey data from the German Socio-Economic Panel (SOEP), I find considerable and partly persistent losses in labour market outcomes of workers from declining compared to booming industries. Life satisfaction of workers from declining industries is decreased in the short run whereas the probability to move to the West and to identify with a left-wing political party is increased merely in the longer run.

Racial Gaps in the Labor Market: The Role of Nonwhite Entrepreneurship

We investigate how the racial composition of entrepreneurs affects racial differences in labor market outcomes of workers. We create a novel data set that identifies the race of firm owners in Brazil and link it with matched employer-employee data that contains information on the universe of formal employment contracts. We first present evidence of assortative matching between nonwhite workers and nonwhite entrepreneurs. Controlling for a wide set of covariates, we find that the share of nonwhite workers is 18.7% higher in firms with at least one nonwhite owner. We then show that the adjusted racial wage gap is 28% smaller in firms with nonwhite entrepreneurs than in white-owned firms. This is partially explained by nonwhite workers accessing better occupations in firms with nonwhite entrepreneurs. Lastly, we show that nonwhite workers are 15% more likely to become entrepreneurs if they were previously employed by nonwhite entrepreneurs than if they were employed by white entrepreneurs.

Effects of Paid Leave Policies on Working Caregivers' Labor Supply

Approximately two in three caregivers are in the labor force. However, paid family leave is the only policy support for working caregivers to date, which helps to balance their work and care responsibilities. I analyze the data from the 1998-2014 Health and Retirement Study to examine 1) how paid leave policies affect labor market outcomes for workers in need of caring for a spouse/partner or an older parent/-in-law and 2) how the effects differ by gender. Paid leave policy is distinguished between employer-provided leave and state government-provided leave. Using the first-difference approach, I compare the short-term and long-term changes in the extensive and intensive margins of labor with and without access to paid leave policies when a health deterioration of the older family member occurs. My preliminary results show that, without paid leave policy, the health event of a spouse/partner or an older parent/-in-law affects women’s labor supply but not men’s. Paid leave provided by an employer increases the labor supply for both women and men, with the more noticeable long-term effects for men. State paid family leave increases women’s wage and salary both in the short run and in the long run. My findings underline the importance of paid leave policy for retaining the workers in need of providing care for a family member, particularly for women.

Do German Works Councils Counter or Foster the Implementation of Digital Technologies?

Abstract As works councils’ information, consultation and co-determination rights affect the decision process of the management, works councils play a key role in the implementation of digital technologies in establishments. However, previous research focuses on the potential of digital technologies to substitute for labor and its impact on labor market outcomes of workers. This paper adds the role of industrial relations to the existing literature by analyzing the impact of works councils on the implementation of digital technologies. Theoretically, the role of works councils in the digital transformation is ambiguous. Using establishment data from the IAB Establishment Survey of 2016 combined with individual employee data from the Federal Employment Agency and occupational level data about the physical job exposure, empirical evidence indicates an ambivalent position of works councils towards digital technologies. The sole existence of works councils is associated with statistically significant lower equipment levels with digital technologies. However, works councils seem to foster the equipment with digital technologies in those establishments, which employ a high share of workers who are conducting physical demanding job activities. Thus, this study highlights the importance of establishment-level workforce representation for the digital adoption process within Germany.

Examining the relevance of employment integration policies on disability benefit receipt: a multilevel analysis of older working age adults in 16 countries

Purpose: Nearly all advanced economic countries have adopted employment integration policies to improve the labor market outcomes of workers with disabilities and to reduce enrollment on disability benefits. To date, research has yet to investigate whether the adoption of integration policies is associated with a reduced likelihood of an older working age adult receiving disability benefits.Materials and methods: This study, drawing on data of older working-age adults from the Survey of Health Ageing and Retirement in Europe, the English Longitudinal Study of Ageing, and the Health and Retirement Study, applies multilevel logistic regression to investigate the relationship between country-level integration policies and the likelihood of disability benefit receipt in 16 OECD countries.Results: No clear association was identified between the adoption of major integration policies (comprehensiveness of vocational rehabilitation systems, employer obligation policies, work-incentive rules, benefit suspension options, and early intervention efforts) and an individual’s likelihood of receiving disability benefits. The minimum level of disability required to receive benefits was, however, identified as a significant country-level factor.Conclusions: The findings of this study may prove useful for policy makers who must weigh the costs and benefits of expanding integration measures targeted at those nearing the state pension age.Implications for RehabilitationMany countries have adopted integration policies to improve employment outcomes of adults with work-disabilities.No clear association is identified between the adoption of integration policies and a reduced likelihood of receiving disability benefits among older adults in 16 countries.The strictness of the definition of disability used to determine eligibility is identified as a significant country-level predictor.Policy makers should carefully weigh the costs and benefits of expanding integration measures targeted at those nearing the state pension age.

School-to-Work Linkages, Educational Mismatches, and Labor Market Outcomes

A recurring question in public and scientific debates is whether occupation-specific skills enhance labor market outcomes. Is it beneficial to have an educational degree that is linked to only one or a small set of occupations? To answer this question, we generalize existing models of the effects of (mis)match between education and occupation on labor market outcomes. Specifically, we incorporate the structural effects of linkage strength between school and work, which vary considerably across industrialized countries. In an analysis of France, Germany, and the United States, we find that workers have higher earnings when they are in occupations that match their educational level and field of study, but the size of this earnings boost depends on the clarity and strength of the pathway between their educational credential and the labor market. The earnings premium associated with a good occupational match is larger in countries where the credential has a stronger link to the labor market, but the penalty for a mismatch is also greater in such countries. Moreover, strong linkage reduces unemployment risk. These findings add nuance to often-made arguments that countries with loosely structured educational systems have more flexible labor markets and produce better labor market outcomes for workers. An institutional environment that promotes strong school-to-work pathways appears to be an effective strategy for providing workers with secure, well-paying jobs.

Do German Works Councils Counter or Foster the Implementation of Digital Technologies?

As works councils' information, consultation and co-determination rights affect the decision process of the management, works councils play a key role in the implementation of digital technologies in establishments. However, previous research focuses on the potential of digital technologies to sub-stitute for labor and its impact on labor market outcomes of workers. This paper adds the role of industrial relations to existing literature by analyzing the impact of works councils on the implementation of digital technologies. Theoretically, the role of works councils in the digital transformation is ambiguous. Using establishment data from the IAB Establishment Survey of 2016 combined with individual employee data from the Federal Employment Agency and occupational level data about the physical job exposure, empirical evidence indicates an ambivalent position of works councils to-wards digital technologies. The sole existence of works councils leads to statistically significant lower equipment levels with digital technologies. However, works councils foster the equipment with digital technologies in those establishments, which employ a high share of workers who are conducting physical demanding job activities. Thus, this study highlights the importance of establishment-level workforce representation for the digital adoption process within Germany.

Measuring match quality using subjective data

We examine whether subjective information routinely collected in general surveys can be used to construct a single measure of underlying match quality which helps test matching models and predict labour market outcomes of workers.

Measuring Skills Mismatch

The author develops a new methodology to measure occupational skill requirements in New York City. The analysis matches locally derived skill ratings for detailed census occupations to years of local schooling and then estimates the change in mean skill requirements for employed New York City residents and the change in local employment of occupational skills classed by level of required education during the 1980s. The results show insignificant change in employment weighted skill means for all occupations. But the disaggregated analysis shows skill requirements bifurcated during the decade, with employment growth concentrated in college-level and sub–high school graduate–level occupations relative to high school graduate–level occupations. The findings suggest that demand-side forces are destroying mid-skilled jobs, casting doubt on the efficacy of supply-side policy measures intended to improve labor market outcomes for workers with less than a college education.

The effects of impairments on employment and wages: estimates from the 1984 and 1990 SIPP.

Unlike the minority groups covered by civil rights laws in the past, the disabled population is a heterogeneous group. Because of differences in the nature and onset of health conditions, it is important to study the labor market experiences of different impairment groups separately, rather than treating "disabled workers" as a single group. This article uses data from the 1984 and the 1990 panels of the Survey of Income and Program Participation to analyze trends in the employment and wages of six impairment groups in the years immediately preceding the ADA. The results confirm the diversity of labor market experiences within the disabled population and suggest that policies designed to improve labor market outcomes for workers with disabilities in response to the ADA should be targeted to the different needs of different impairment groups.

The Effects of Displacement On Measures of Reemployment Bonus Impacts

Evaluations of the impacts of government employment and training programs on workers have generally followed a strategy whereby the labor market outcomes of workers who receive program services are compared with the outcomes of workers who do not receive program services. Differences in outcomes are then attributed to the effects of receiving services. This article examines the problem of measuring the impacts of reemployment bonuses when treatment group members and control group members interact in the labor market. It is shown that the conventional measure of bonus impacts — the difference in average time spent unemployed of the treatment group and control group — may significantly overestimate the net impact of the bonus offer, and that measuring the net impact correctly requires the presence of another control group that is not affected by the bonus program. It is also shown that measured impacts from previous bonus experiments may have been due entirely to displacement, but the designs of these experiments were not statistically adequate to detect displacement. The implication is that the results of previous bonus experiments should be treated with considerable caution.